Report Overview

UAE Electric Vehicle (EV) Market - Industry Trends & Forecast Report, 2030

The UAE Electric Vehicle (EV) Market size was estimated to be worth USD 3.83 billion in 2023. During the forecast period between 2024 and 2030, the UAE Electric Vehicle (EV) Market size is projected to grow at a CAGR of 13.38%, reaching a value of USD 8.14 billion by 2030. Major growth factors for the UAE Electric Vehicle (EV) Market include rising consciousness towards carbon emissions and sustainability, along with increasing launches of new EVs with advanced features in the UAE market. Moreover, rising government investments in EV charging infrastructure is projected to drive demand for EVs in the UAE over the forecast period.

Electric Vehicles (EVs) – Overview

Electric vehicles (EVs) are automobiles that make use of an electric motor for propulsion. EVs can be charged using electricity from outside the vehicle, or they can be self-powered using batteries that are occasionally recharged by solar panels or by transforming fuel into electricity via fuel cells. Compared to fuel vehicles, EVs are quieter, have no exhaust emissions, and have lower emissions. Therefore, EVs are the most popular among environmentally conscious customers. Also, EVs can run on battery power partially derived from gasoline or diesel, called hybrid EVs. They also have limited moving parts, which means they require less maintenance, proving cost-efficient for the owners.

UAE Electric Vehicle (EV) Market

Growth Drivers

Rising Consumer Inclination toward Electric Vehicles (EVs)

UAE is emerging as a lucrative market for EVs owing to the rising consumer awareness about carbon footprints and sustainability. The Dubai Water and Electricity Authority (DEWA) projects that there will be 12,852 EVs in Dubai by 2025, up from an anticipated 7,331 in 2023. According to the Khaleej Times, 82% of UAE citizens support buying EVs as their next car, placing the country first in the region and seventh overall in the electric vehicle readiness index. Experts associate the growth of EVs in high-income countries, such as the UAE, with environmental concerns among consumers, which is directly propelling the growth of the UAE Electric Vehicle (EV) Market.

Challenges

High Cost of Electric Vehicles

Electric vehicles (EVs) offer long-term economic benefits to their owners due to the lower average cost of fuel. However, they do involve high upfront costs, which acts as a major restraining factor for the UAE Electric Vehicle (EV) Market. One of the major factors responsible for the high price of EVs is the battery, since battery materials, such as lithium, need to be imported from lithium-producing countries such as Russia and China, which directly escalates the price of the EVs. Moreover, the UAE is a major oil-producing country, which signifies lower average spending on fuel for petrol and diesel cars.

Impact of Escalating Geopolitical Tensions on the UAE Electric Vehicle (EV) Market

Growing geopolitical tensions severely hindered the growth of the UAE Electric Vehicle (EV) Market. For instance, Russia’s invasion of Ukraine and the outbreak of a full-fledged war between the two nations limited the production and supply chains of EVs in the UAE market. Ukraine had been emerging as a lucrative EV manufacturing country as a major producer of many EV parts and components; however, the war led to a labor shortage due to the mass displacement of people and a lack of resources in the EV industry. Furthermore, Russia is a leading producer of lithium, a key component in electric vehicle batteries. As a result of sanctions imposed on Russia by other countries and international organizations, the EV market registered a significant shortage of lithium globally, which led to increased prices of EVs, making them unaffordable for many consumers in the UAE market.

UAE Electric Vehicle (EV) Market

Segmental Coverage

UAE Electric Vehicle (EV) Market – By Type

Based on type, the UAE Electric Vehicle (EV) Market is segmented into battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and fuel cell electric vehicles (FCEVs). The BEVs segment accounts for the highest share of the UAE Electric Vehicle (EV) Market and is projected to grow at the highest rate during the forecast period as well. Battery EVs provide lower energy consumption compared to their counterparts, along with higher efficiency and easy maintenance. The increasing number of EV charging stations with government aid is anticipated to directly impact the growth of the BEVs segment in the UAE.

UAE Electric Vehicle (EV) Market – By Vehicle Type

Based on vehicle type, the UAE Electric Vehicle (EV) Market is segmented into two-wheelers, passenger cars, and commercial vehicles. The commercial vehicles segment holds the largest share of the market due to the growing usage of commercial vehicles in the transportation and logistics industries. Additionally, the country's thriving small- and medium-sized businesses are driving up demand for commercial cars.

UAE Electric Vehicle (EV) Market – By Vehicle Class

Based on vehicle class, the UAE Electric Vehicle (EV) Market is segmented into mid-priced and luxury. The mid-priced vehicle class accounts for the highest share of the UAE Electric Vehicle (EV) Market. The EVs in this class range from around USD 30,000 to USD 45,000 and offer limited features, such as infotainment, central locking, an anti-lock braking system, Alexa compatibility, and many more. They are gaining significant traction among commercial uses, such as public transportation, which is contributing to their market growth. However, the luxury vehicle class is witnessing growth at a higher CAGR in the UAE market owing to the high living standards and purchasing power of consumers.

UAE Electric Vehicle (EV) Market – By Top Speed

Based on top speed, the UAE Electric Vehicle (EV) Market is segmented into less than 100 mph, 100 to 125 mph, and more than 125 mph. The less than 100 mph segment holds the largest share of the market, as EVs have the highest efficiency when driven at 50–60 mph and consume 14% less energy at this speed range, according to the Department of Energy, United States. The 100 to 125 mph segment also holds a substantial market share owing to its use as lightweight commercial vehicles and electric vans.

UAE Electric Vehicle (EV) Market – By Vehicle Drive Type

Based on the vehicle drive type, the UAE Electric Vehicle (EV) Market is divided into front-wheel drive, rear-wheel drive, and all-wheel drive segments. The front-wheel drive segment accounts for the highest share of the UAE Electric Vehicle (EV) Market. Front wheel drive offers higher energy efficiency and performance, due to which most major EV players, such as Hyundai and Nissan Leaf, offer FWD EVs. However, the rear wheel drive segment is projected to register the highest growth rate during the forecast period. The EV makers are moving forward with rear wheel drive to offer improved traction, directness, and speed by reducing the weight on the front axle.

Competitive Landscape

Major players operating in the UAE Electric Vehicle (EV) Market include Al Damani, Tesla, BMW, Nissan, Chevrolet, Renault Group, Hyundai, Ford, Porsche, and Jaguar. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In October 2023 – Neta Auto, the electric car brand of Hozon New Energy Automobile Co. Ltd, formed partnership with EIH Automotive & Trading, a UAE car dealer, to launch electric vehicles in the UAE market.

Scope of the Report

By Type

• Battery Electric Vehicle (BEV)

• Plug-in Hybrid Electric Vehicle (PHEV)

• Fuel Cell Electric Vehicle (FCEV)

 By Vehicle Type

• Two-Wheelers

• Passenger Cars

• Commercial Vehicles

By Vehicle Class 

• Mid-Priced

• Luxury

By Top Speed     

• Less Than 100 MPH

• 100 to 125 MPH

• More Than 125 MPH

By Vehicle Drive Type 

• Front Wheel Drive

• Rear Wheel Drive

• All Wheel Drive

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. UAE Electric Vehicle Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Favorable Government Incentives and Initiatives
         2. Increase in Demand for Fuel-Efficient, High-Performance, and Low-Emission Vehicles
      2.  Restraints
         1. Lack of Public Awareness
         2. High Upfront Costs
      3. Opportunities
         1. Steady Growth in the Demand from the Commercial Real Estate
         2. Increasing Environmental Awareness
      4. Challenges
         1. Lack of Charging Infrastructure
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. UAE Electric Vehicle Market Overview
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Type
         1. Battery Electric Vehicle
         2. Plug-in Hybrid Electric Vehicle
         3. Fuel Cell Electric Vehicle
      2. By Vehicle Type
         1. Two-Wheelers
         2. Passenger Cars
         3. Commercial Vehicles
      3. By Vehicle Class 
         1. Mid-Priced
         2. Luxury
      4. By Top Speed     
         1. Less Than 100 MPH
         2. 100 to 125 MPH
         3. More Than 125 MPH
      5. By Vehicle Drive Type 
         1. Front Wheel Drive
         2. Rear Wheel Drive
         3. All Wheel Drive
5.  Competitive Landscape
   1. List of Key Players and Their Range
   2. UAE Electric Vehicle Company Market Share Analysis, 2023
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Development (Merger, Acquisition, Partnership)
6. Impact of Escalating Geopolitical Tensions on UAE Electric Vehicle Market
7. Company Profiles (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook, and SWOT Analysis)
   1. Al Damani
   2. Tesla
   3. BMW
   4. Nissan
   5. Chevrolet
   6. Renault Group
   7. Hyundai
   8. Ford
   9. Porsche
   10. Jaguar
   11. Other prominent players
8. Key Strategic Recommendations
9. Research Methodology
   1. Qualitative Research
      1. Primary & Secondary Research
   2. Quantitative Research
   3. Market Breakdown & Data Triangulation
      1. Secondary Research
      2. Primary Research
   4. Breakdown of Primary Research Respondents
   5. Assumption & Limitation

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List of Figures

Figure 1       UAE Electric Vehicle Segmentation                                  

Figure 2       UAE Electric Vehicle Market Value Chain Analysis   

Figure 3       Company Market Share Analysis, 2023                            

Figure 4       UAE Electric Vehicle Market Size, By Value (USD Billion), 2019–2030

Figure 5       UAE Electric Vehicle Market Share, By Type, By Value, 2019–2030

Figure 6       UAE Electric Vehicle Market Share, By Vehicle Type, By Value, 2019–2030              

Figure 4       UAE Electric Vehicle Market Size, By Vehicle Class, 2019–2030

Figure 5       UAE Electric Vehicle Market Share, By Top Speed, By Value, 2019–2030

Figure 6       UAE Electric Vehicle Market Share, By Vehicle Drive Type, By Value, 2019–2030                                               

List of Tables      

Table 1        UAE Electric Vehicle Market Size, By Type, By Value, 2019–2030

Table 2        UAE Electric Vehicle Market Size, By Vehicle Type, By Value, 2019–2030

Figure 3       UAE Electric Vehicle Market Size, By Vehicle Class, 2019–2030

Figure 4       UAE Electric Vehicle Market Share, By Top Speed, By Value, 2019–2030

Figure 5       UAE Electric Vehicle Market Share, By Vehicle Drive Type, By Value, 2019–2030         

Table 6        Al Damani Company Overview

Table 7        Al Damani Financial Overview

Table 8        Tesla Company Overview

Table 9        Tesla Financial Overview

Table 10      BMW Company Overview

Table 11      BMW Financial Overview

Table 12      Nissan Company Overview

Table 13      Nissan Financial Overview

Table 14      Chevrolet Company Overview

Table 15      Chevrolet Financial Overview

Table 16      Renault Group Company Overview

Table 17      Renault Group Financial Overview

Table 18      Hyundai Company Overview

Table 19      Hyundai Financial Overview

Table 20      Ford Company Overview

Table 21      Ford Financial Overview

Table 22      Porsche Company Overview

Table 23      Porsche Financial Overview

Table 24      Jaguar Company Overview

Table 25      Jaguar Financial Overview